Tax-related data practices policy and technical provisions

A bill for an act

relating to taxation; making policy and technical changes to tax-related data

practices provisions; amending Minnesota Statutes 2024, sections 270B.12,

subdivision 7, by adding a subdivision; 270B.14, subdivision 17, by adding

subdivisions; Minnesota Statutes 2025 Supplement, sections 299C.061, subdivision

6; 299C.76, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 270B.12, subdivision 7, is amended to read:

Subd. 7.

State Lottery.

(a) The commissioner of revenue may disclose to the director

of the State Lottery the amount of delinquent state taxes, or debt as defined in section

270A.03, subdivision 5
, of a winner of a lottery prize of $600 or more, to the extent necessary

to administer section
349A.08, subdivision 8
.

(b) The commissioner of revenue may disclose to the director of the State Lottery that

a retailer
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or a responsible lottery official
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owes $500 or more in delinquent taxes as defined

in section
270C.72
, to the extent necessary to administer section
349A.06, subdivision 2
.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 2.

Minnesota Statutes 2024, section 270B.12, is amended by adding a subdivision to

read:

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Subd. 15.

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Department of Human Services.

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The commissioner may disclose return

information to the commissioner of human services for the purpose of and to the extent

necessary to administer sections 295.50 to 295.59.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 3.

Minnesota Statutes 2024, section 270B.14, subdivision 17, is amended to read:

Subd. 17.

Disclosure to Department of Commerce.

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(a)
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The commissioner may disclose

to the commissioner of commerce information required to administer the Uniform Disposition

of Unclaimed Property Act in sections
345.31
to
345.60
, including the Social Security

numbers of the taxpayers whose refunds are on the report of abandoned property submitted

by the commissioner to the commissioner of commerce under section
345.41
. Except for

data published under section
345.42
, the information received that is private or nonpublic

data retains its classification, and can be used by the commissioner of commerce only for

the purpose of verifying that the persons claiming the refunds are the owners.

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(b) The commissioner may disclose a return or return information to the commissioner

of commerce under section
45.0135
to the extent necessary to investigate employer

compliance with section
176.181
.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 4.

Minnesota Statutes 2024, section 270B.14, is amended by adding a subdivision to

read:

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Subd. 25.

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Disclosure regarding fraud in public programs.

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The commissioner may

disclose to any other government entity, federal agency, or law enforcement agency, data

of any classification related to suspected or confirmed fraud in public programs to the extent

provided in and for the purpose of section 13.357.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 5.

Minnesota Statutes 2024, section 270B.14, is amended by adding a subdivision to

read:

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Subd. 26.

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Disclosure to Department of Public Safety.

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The commissioner may disclose

a return or return information to the commissioner of public safety under section 299C.061

to the extent necessary to investigate employer compliance with section 176.181.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 6.

Minnesota Statutes 2024, section 270B.14, is amended by adding a subdivision to

read:

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Subd. 27.

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Exchange of criminal investigative data between Department of Revenue

and Financial Crimes and Fraud Section.

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(a) For purposes of this subdivision, "FCFS"

means the Financial Crimes and Fraud Section of the Bureau of Criminal Apprehension.

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(b) The commissioner may disclose active criminal investigative data as classified under

section 270B.03, subdivision 6, to the FCFS. The FCFS may disclose active criminal

investigative data concerning tax administration to the commissioner as outlined in section

299C.061, subdivision 6. The commissioner may enter into an agreement with the FCFS

outlining procedures to implement the exchange of information under this subdivision, but

an agreement may provide for the disclosure of data only to the extent allowed under this

subdivision. Disclosure is allowed only for the purpose of and to the extent necessary for

tax administration and for the purpose of and to the extent necessary for the FCFS to carry

out section 299C.061, subdivision 3.

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(c) Data disclosed by the commissioner to the FCFS under this subdivision are classified

under section 270B.03, subdivision 6. Data disclosed by the FCFS to the commissioner

under 299C.061, subdivision 6, are classified under section 13.82, subdivision 7.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 7.

Minnesota Statutes 2025 Supplement, section 299C.061, subdivision 6, is amended

to read:

Subd. 6.

Data sharing authorized.

Notwithstanding chapter 13 or any other statute

related to the classification of government data to the contrary, state agencies making a

referral under subdivision 4 or 5 shall provide data related to the suspected fraudulent activity

to the Section, including data classified as not public. The Section may share active criminal

investigative data concerning insurance fraud with the Department of Commerce
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and active

criminal investigative data concerning tax administration with the Department of Revenue.

Data shared by the Section under this subdivision are classified under section 13.82,

subdivision 7
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.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 8.

Minnesota Statutes 2025 Supplement, section 299C.76, subdivision 1, is amended

to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following definitions

apply.

(b) "Federal tax information" means federal tax returns and return information or

information derived or created from federal tax returns, in possession of or control by the

requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of

the Internal Revenue Code.

(c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that

provides guidance and requirements for the protection and confidentiality of federal tax

information as required in section 6103(p)(4) of the Internal Revenue Code.

(d) "National criminal history record information" means the Federal Bureau of

Investigation identification records as defined in Code of Federal Regulations, title 28,

section 20.3(d).

(e) "Requesting agency" means the Department of Revenue; Department of Employment

and Economic Development; Department of Human Services; Department of Children,

Youth, and Families; board of directors of MNsure; Department of Information Technology

Services; attorney general;
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Office of the Legislative Auditor;
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and counties.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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